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2019 (2) TMI 272 - ITAT CHANDIGARHDisallowance in respect of Cars and Telephones used by the staff members of the assessee firm under section 38 (2) - allowable busniss expenses - adhoc disallowance of 1/6th of the expenses pertaining to car and telephone expenses rejecting the explanation of the assessee - Held that:- Assessee before the CIT(A) has specifically addressed that out of the 10 cars maintained, only two were used personally by the partners. Similarly, out of 145 telephone numbers maintained, only two telephone numbers were being used by the partners. As per the submissions extracted from the assessment order, it is seen that the assessee has submitted that details have been maintained qua each of the vehicles/mobile numbers. The issue may also be of a recurring nature. we are of the view that instead of arriving at an arbitrary estimate, it is appropriate to set aside the issue back to the file of the CIT(A) with the direction to take the past history of the assessee into consideration and confine the disallowance to be made only on the grounds of personal usage to the specific cars/mobile/phones stated to be used by the partners, in case the claim is found to be correct on record. - Appeal of the assessee is allowed for statistical purposes.
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